L A W E N E

THE MARSHALL PLAN: R R A W - T

REBUILDING A S O DEVASTATED EUROPE P HOW GEORGE C. MARSHALL GUIDED EFFORTS TO REBUILD POST WORLD WAR II EUROPE By Gerald Zarr

This is Hamburg in 1945. There were an estimated 500 million cubic tons of rubble in German cities. There were so many unburied corpses in the rubble that whole districts of German cities were walled in to prevent the spread of disease.

leading to pitched battles between miners and police. Several hundred Navy electricians narrowly saved the capital’s electric plants from Communist sabotage. In Germany, food rations were reduced to 1,040 calories a day, and men and women fainted at their desks. Without coal, homes went unheated in winter and hundreds died. Troubled by stories of starva - hen the Second World War ended in August 1945, tion in occupied Germany, Europe was devastated. Once-fertile fields were scarred President Truman sent former by bomb craters and tank tracks. Sixty million people president Herbert Hoover on a died. Warsaw, Berlin, Hamburg, Le Havre and Rotter - fact-finding mission to Germany dam lay in ruins. An estimated 500 million cubic tons in early 1946. Hoover was the oWf rubble littered German cities alone. With factories and businesses ideal choice for this job. Born in destroyed, there was no work. Iowa — and still the only presi - dent from that state — he became a mining engineer, and worked “What is Europe now? It is a rubble-heap, a charnel house, in the Australian gold mines. At the outbreak of the First World a breeding ground of pestilence and hate.” War, he found himself in London Winston Churchill, May 14, 1947 and, almost by accident, got into Belgian war relief. For 2 years, he worked 14 hour days, distributing In Britain, this period is known as the Age of Austerity — a time of 2½ million tons of food to 9 mil - drab clothes, long faces, and endless queues. Everyone had a ration lion war victims. In an early form book for food, petrol and clothes. Food rations fell below the wartime of shuttle diplomacy, he crossed average. France had the added burden of Communist-inspired strikes, the North Sea 40 times to meet

October/November 2012 History Magazine 37 L duty. After the war, he didn’t seek A

W further office, but was not one to E turn down his commander-in- N

E chief. In January 1947, he became R secretary of state. In his famous R

A speech at Harvard University on 5

W June 1947, he spoke of Europe’s - T

S dysfunctional economy: Europe

O was caught in a vicious circle. It P had to rebuild its shattered indus - try and get people back to work, but governments had to use their scarce foreign exchange to import food just to keep people alive. The market economy had broken down. With nothing to buy in stores, farmers had no incentive to sell their produce for money. Farmers let their land lie fallow and food production plummeted. Marshall said that the U.S. should A German mother cooks for her family on a street corner in Berlin in August 1945. do what it can “to assist in the return of normal economic health to the world, without which there with German authorities and per - THE MARSHALL PLAN can be no political stability and suade them to allow food ship - UNVEILED no assured peace.” And then to ments, becoming an international George Catlett Marshall was reassure the Soviet Union: “Our hero. In 1946, Hoover crisscrossed America’s foremost soldier during policy is not directed against Germany in Field Marshal Her - World War II, serving as U.S. any country, but against hunger, mann Goering’s old rail coach. His Army chief of staff from 1939 to poverty, and chaos.” report to Truman was sharply 1945. He was a self-effacing man Perched up in his bed in critical of U.S. occupation policy: with a highly developed sense of London, British Foreign Secretary “There’s an illusion that Germany can be reduced to a pastoral state. It can’t be done, unless 25 million people are killed or moved out of Germany.” This was a thinly veiled swipe at the Morgenthau Plan, devised by Henry Morgenthau, Roosevelt’s Treasury Secretary, which sought to turn Germany into a pastoral state, without heavy industry. After Hoover’s report, the Morgenthau Plan was replaced by a new strategy which supported “the complete revival of German industry — because a prosperous Europe requires the economic contributions of a stable and productive Germany.” To combat malnutrition, a school meals program was started, feeding 3.5 In Britain, the postwar years are known as the Age of Austerity. Everyone had a million children, known as the ration book for food, petrol and clothes — and food rations fell below the wartime Hooverspeisung (Hoover meals). average. It was a time of drab clothes, long faces, and endless queues.

38 History Magazine October/November 2012 Ernest Bevin listened to a broad - cast of the speech on the BBC. He immediately grasped its signifi - cance: “It was like a lifeline to sinking men. It seemed to bring hope when there was none. The generosity of it was beyond belief.” Yes, there was altruism in the American offer, but a large dose of self interest too. The American economy had emerged relatively unscathed from World War II and could produce the au - tomobiles, machinery, and other goods that Europe craved, but couldn’t afford. Bevin goaded Europe into action. In July 1947, sixteen West - ern European countries met at the grand dining room of the French Foreign Ministry to agree George Catlett Marshall became on a response to the American secretary of state in Jan. 1947 offer. This was a tall order because — the first career soldier to hold that many competing interests had to office. Here he is in the procession at Harvard University, just before his be reconciled. France insisted that famous speech on 5 June 1947. Germany not be rebuilt to its previous threatening power. The British Foreign Secretary Ernest Bevin Benelux countries were closely was the first to see the significance of Marshall’s speech: “George C. Marshall linked to the German economy threw us a lifeline and we grabbed it and felt their prosperity depended with both hands.” With Bevin’s prodding, on its revival. Scandinavia wanted Europe moved quickly. Only one month after Marshall’s speech, 16 Western to protect its trading relationships European countries met at the grand with the Eastern Bloc and safe - dining room of the French Foreign guard its neutrality. Great Britain Ministry to agree on a response to the insisted on special status. The American offer. Americans made it clear that any plan for European recovery had meeting. Molotov went to Paris, At 29, he became secretary of the to come from the Europeans but left in a huff saying the Bristol branch of the Dockers’s themselves. America would only Marshall Plan violated the U.N. Union. He spoke with a strong help those who energetically and charter and the United States was West Country accent. Forever cooperatively helped themselves. a “center of anti-Soviet activity”. reading and studying, in Baptist Marshall made his offer to all The powerful French and Italian chapel and trade union study Europe, not just Western Europe, communist parties were ordered groups, he sought books and de - so for a time, Stalin considered to block the Marshall Plan in bate wherever they were available. applying for Marshall Plan aid. their countries. He developed his oratorical skills But this would require the Soviets as a Baptist lay preacher. He was a to open up their economic books, THE KEY EUROPEANS physically huge, strong and, by the a clear no-no for them. When British Foreign Secretary Ernest time of his political prominence, Czechoslovakia made plans to Bevin was born in a remote very heavy man. It was said of attend the Paris meeting, Stalin Somerset village, orphaned at Bevin — as a compliment to the summoned Foreign Minister Jan eight, and left school at 11. He respect which he had earned — Masaryk to Moscow for a tongue- worked as a bakeshop boy at six - that it was hard to imagine him lashing, which led all Eastern pence a week, a van boy, a horse filling any other job in the Foreign European leaders to boycott the tram conductor, and a teamster. Office except that of an old and

October/November 2012 History Magazine 39 L truculent lift attendant. Bevin was Soviet Foreign Minister will quiver a few times and then A

W a strong supporter of the United Vyacheslav Molotov accompa - die.” It was named the Marshall E States and the Marshall Plan. nied Stalin to all the wartime Plan. The plan met sharp opposi - N

E France’s Foreign Minister conferences, where he was known tion from the isolationist wing of R Robert Schuman was as different as a tough negotiator and deter - the Republican Party and from R

A from Ernest Bevin in appearance, mined defender of Soviet inter - Leftists, who saw the plan as a

W temperament, mind and manner ests. In his wartime memoirs, subsidy for American exporters - T

S as any man could be. He was lean, Churchill lists many meetings and an irritant for the Soviet

O slightly stooped, with a long, seri - with Molotov, whom he called a Union. Opposition waned after P ous face, and a habit of sinking his “man of outstanding ability and the Communist coup in Czecho - chin in his collar as he peered over cold-blooded ruthlessness... In the slovakia in February 1948. his eyeglasses. He was born and conduct of foreign affairs, Mazarin, Truman signed the Marshall went to school in Luxembourg. Talleyrand, and Metternich would Plan into law on 3 April 1948. It He did his university studies in welcome him to their company, if was a bipartisan effort — proposed Germany and practiced law in there be another world to which by a Democratic president and Metz, then under German rule. Bolsheviks allow themselves to go.” enacted into law by a Republican- He didn’t become a French citizen controlled Congress — in a hotly until age 33, when Alsace- THE MARSHALL PLAN contested presidential election Lorraine was returned to France BECOMES LAW year. Key Republican supporters in 1919. Schuman always spoke Looking back at the unquestioned were Senator Arthur Vandenberg French with a heavy accent. As success of the Marshall Plan, it’s of Michigan and Representative Dean Acheson said of him, he had a vision of a united Europe at a time when France lacked a vision. France had been traumatized by both wars and had a deep inferiority complex toward the other Allies. His task, as he saw it, was to bring France and Germany together so they might lead Europe to unity within a still broader Atlantic community. With a political career spanning 60 years, West Germany’s Konrad Adenauer had been mayor of Cologne sixteen years when Hitler came to power. He refused to shake hands with a Nazi leader, was dismissed, and went into hiding, fleeing to an The Marshall Plan team: President Truman; Secretary of State George C. Marshall; abbey where he stayed over a year. Paul G. Hoffman, who took a two-year leave of absence as president of the Studebaker automobile corporation to run the Economic Cooperation Administration (ECA) in He was imprisoned three times by Washington; and Averill Harriman, who was the Marshall Plan’s representative in Paris the Nazis, but never convicted of at the Organization for European Economic Cooperation (OEEC). a crime. In 1949, he became the first Chancellor of the Federal hard to appreciate how controver - Joe Martin of Massachusetts. Republic of Germany and the sial it was at the time. Americans Vandenberg was a former news - oldest ever, at age 73. He stayed in had already contributed $11 paper editor from Grand Rapids office 14 years. His achievements billion to war relief — over $100 and an isolationist — until Pearl include: a stable democracy in billion in today’s dollars — and Harbor. Large and hearty, he had defeated Germany, a lasting rec - couldn’t understand why Europe the mannerisms of a pompous onciliation with France, and still needed more help. When told stage senator, combing a few recovering sovereignty for West the plan would bear his name, strands of hair over his mostly bald Germany by firmly integrating it Truman quipped: “Anything sent head. Short and square, Martin in NATO and the Marshall Plan. to the Hill with my name on it wore poorly-fitting three piece

40 History Magazine October/November 2012 navy blue suits and boxy black policeman’s shoes. Even when speaking to small groups, he stood on a chair to be seen. Vandenberg was the son of a harness-maker and Joe Martin, the son of a blacksmith — men whose backgrounds Truman could relate to. The law established the Economic Cooperation Adminis - tration (ECA), headed by Paul G. Hoffman, who took a two year leave of absence from his job The Marshall Plan years were the fastest period of growth in European history. as president of the Studebaker These photographs of Stuttgart were taken from the same spot, only 8 years apart. automobile corporation. Averill Harriman, the son of a railroad evolved into the Schuman Plan, fertilizer; and 1/3 for machines, baron, was the Marshall Plan’s the Common Market, and eventu - vehicles, and fuel. The American European representative at the ally the European Union. economy flourished. Organization for European ECA arranged for payment to Economic Cooperation (OEEC) the American supplier in dollars, THE BERLIN AIRLIFT in Paris. but the Europeans were not given The Soviets condemned Marshall the goods as a gift. They had Aid as a capitalist ruse. The THE MARSHALL PLAN to pay for them in their local Soviet’s blockade of Berlin started IMPLEMENTED currency, which was deposited in on 24 June 1948 — triggered by Sixteen countries signed up for a counterpart fund managed by the currency reform of 1948 the Marshall Plan, allies, neutrals the country with oversight by which gave birth to the Deutsche and ex-enemies alike. The list the OEEC. The Germans used Mark and the first moves toward included Austria, Belgium, Den - their counterpart funds as a re - an independent West Germany. mark, France, West Germany, volving fund for German business On the first day of the blockade, Great Britain, Greece, Iceland, which, in time, became the large 100 C-47 transport planes carry - Ireland, Italy, Luxembourg, the German development bank — the ing supplies landed at Berlin’s Netherlands, Norway, Sweden, Kreditanstalt fur Wiederaufbau . Templehof Airport. As the weeks Switzerland, and Turkey. The The French used their counter - went by, the Berlin Airlift was Communist Bloc stayed out, as part funds to stabilize their sending over more tons of flour, did Finland for fear of offending currency and reduce the budget meat, potatoes, sugar, coffee, milk, the Soviets. Fascist Spain was not deficit. Italy used some counter - and veggies than would have gone invited. part funds to eradicate malaria in by rail. And Operation Little At first, European countries Sardinia, while the Dutch under - Vittles dropped candy and choco - lobbied for Marshall Plan aid like took massive land reclamation late by air for German children. prehistoric cavemen jostling each projects in the Zuider Zee. Almost a year into the blockade, other for a share of the meat. But The Marshall Plan years (1948- Stalin gave it up, a clear victory the Marshall Plan forced Euro - 51) were the fastest period of for the Western allies. peans to set aside their national growth in European history. rivalries and cooperate. The eco - Within weeks, desperately needed THE NOBEL PEACE PRIZE nomic issues were complex — but goods began reaching Europe — George C. Marshall was the first the Americans religiously avoided butter and eggs returned to stores, — and the only — professional complexity. They said to the and medical supplies to hospitals. soldier to be awarded the Nobel Europeans: map out your needs, Every day, 150 ships were either Peace Prize for his role in crafting see what you can provide yourself, bringing cargo to Europe or and implementing the Marshall and what you can ship to other unloading in port. In all, $13 Plan. He received the prize at a European countries. We’ll figure billion was provided to Europe resplendent ceremony in Oslo in out the payment details and cover under the Marshall Plan: 1/3 for December 1953. As his name was the shortfall. The cooperation raw materials and manufactures; read, Communists interrupted the that began with the Marshall Plan 1/3 for food, animal feed, and ceremony, dropping leaflets from

October/November 2012 History Magazine 41 L the balcony and shouting, “We recent analysis of the eurozone the U.K., in any postgraduate field A

W protest!” Norwegian King Haakon debt crisis on the global economy. of study. Approximately 40 Schol - E VII indignantly rose to his feet The German-Marshall Fund ars are selected each year. Most N

E and led the audience in applause of the United States is a nonpar - Scholars choose to attend Oxford, R for Marshall. Communist parties tisan American public policy Cambridge, Imperial College R

A in Western Europe faded in pop - and grant-making institution London, or the London School

W ularity after the start of Marshall dedicated to promoting greater of Economics. Currently, there - T

S Plan aid. cooperation and understanding are approximately 1,500 Marshall

O between North America and Eu - Scholar alumni . Hm P THE MARSHALL PLAN rope. Germany set up the Fund in REMEMBERED 1972 as a permanent memorial to Although it only lasted three Marshall Plan assistance. West FURTHER READING years, the Marshall Plan fostered German Chancellor Willy Brandt Behrman, Greg, The Most Noble powerful principles of self help unveiled the Fund at Harvard on Adventure: The Marshall Plan and and mutual cooperation, now the 25th anniversary of Marshall’s the Time When America Helped mainstays of international devel - famous speech. In addition to its Save Europe (New York: Simon & opment. It forced Europeans to headquarters in Washington, DC, Schuster, Inc. 2007). set aside national rivalries and the Fund has offices in Berlin, take seriously the need for re - Warsaw, Bratislava, Paris, Brussels, gional planning and cooperation. Belgrade, Ankara, and Bucharest. GERALD ZARR is a retired U.S. The Marshall Plan administrator The Marshall Scholarships Foreign Service Officer who has (OEEC) survives today as the were created by the British Parlia - lived and travelled widely in Organization for Economic ment in 1953 as “a living gift to Asia, Africa, the Caribbean, and Co- operation and Development the United States” in appreciation Europe. He is the author of a (OECD), still in Paris, but in more for the Marshall Plan. Marshall cultural guidebook on Tunisia grand accommodations than in Scholarships provide American and a frequent contributor to the old days. The OECD is often students with two fully funded the History Magazine. in the news for its studies, like its years of study at any university in

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42 History Magazine October/November 2012